The Downsides or Limitations of Mergers and Acquisitions Include All

question 26

Multiple Choice

The downsides or limitations of mergers and acquisitions include all of the following, except

• A) expensive premiums that are frequently paid to acquire a business.
• B) difficulties in integrating the activities and resources of the acquired firm into a corporation's on-going operations.
• C) it is a slow means to enter new markets and acquire skills and competences.
• D) there can be many cultural issues that can doom an otherwise promising acquisition.

---

Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to adjust the income and expenditure records for accuracies in financial reporting.

Financial Statements

Reports that provide detailed information about a company's financial position and performance, including the balance sheet, income statement, and cash flow statement.

Accounting System

A systematic arrangement of both manual and automated accounting processes, techniques, and safeguards designed to collect, document, categorize, scrutinize, condense, elucidate, and convey precise and up-to-date financial information.

Supplies Account

An account that tracks the cost of supplies on hand and consumed by a business, which can be adjusted through adjusting entries for accurate financial reporting.